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Cost of the Newly Insured Under the Affordable Care Act

Research Projects in Health

The Society of Actuaries is pleased to make available material examining the cost of the newly insured under the Affordable Care Act. The main objective of this research is to estimate the morbidity change due to new participants in the individual market and the impact that the Affordable Care Act (ACA) will have on filling the uninsured gap. The material was authored by Randy Haught and John Ahrens.

Research sponsored by the Society of Actuaries (SOA) predicts ACA-driven changes in individual market composition of the individual health care market could drive up underlying claims costs by an average of 32 percent nationally by 2017. The research also predicts high variability among states, with as many as 43 states experiencing a double-digit claims cost increase.